Dr. Patrick Frankham reports
PIVOT ANNOUNCES COMPLETION OF DEFINITIVE AGREEMENT WITH CARTAGENA INC.
Pivot Pharmaceuticals Inc. has completed the previously announced transaction to create a joint venture corporation with Cartagena Leaf Inc., a subsidiary of Mexico-based Licorera Del Sur. The joint venture is structured as a federally registered stand-alone company from which Pivot will receive 50 per cent of net revenues generated by the JVC. Each party will appoint two board members to the JVC.
The JVC will develop and commercialize cannabis-infused non-alcoholic beverages combining the proven industry expertise of Licorera del Sur with Pivot's patented Solumer and RTIC powderization technologies. Formulation development is nearing completion, branding and marketing are under way, and product launch is scheduled for the second quarter of 2019 in global markets through Licorera Del Sur's extensive distribution network, where regulations permit.
Paul Bou-Nader, managing director of Cartagena Inc., stated: "Our formulators have been working diligently with Pivot's scientists and we are very pleased with the progress to date, having already established a go-to-market flagship product. We will offer consumers a healthy and natural alternative to alcohol-based beverages with products that contain either CBD or THC."
Dr. Patrick Frankham, chief executive officer of Pivot, stated: "As expected, our cannabis-infusion technology is stable, water soluble, bioavailable and renders CBD tasteless and odourless. By combining our Solumer technology with natural fruit juices, we have succeeded in the creation of a premium, low-calorie beverage experience that offers consumers the benefits of CBD in a flavourful product. We anticipate launching many more products in partnership with Licorera del Sur, including a line of products infused with THC. Pivot's patented technologies are game changers for the cannabis-infused beverage industry."
Drinks infused with marijuana-derived compounds could swell to become a $600-million market in the United States within the next four years, outpacing the growth of other categories of retail cannabis products, according to analysts at Canaccord Genuity. Canaccord also sees the demand for beverages featuring CBD, or cannabidiol, reaching $260-million by 2022, up from the negligible revenue the limited number of drinks contribute now, while THC-based drinks could reach $340-million, up from $106-million expected this year.
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies.
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